auto parts: minas gerais business...

AUTO PARTS: MINAS GERAISBUSINESS OPPORTUNITIES

Federation of Industries of the State of Minas Gerais

BRAZIL: ONE OF THE MOST IMPORTANT GLOBAL PLAYER

1st

4th

Producer in Latin America

Automotive market

Located in the southeastern part of Brazil, Minas Gerais state has a GDP similar to Chile and Czech

Republic and is the Brazilian leader in steel production.

SP+ RJ + MG = 52% of the Brazilian vehicles market

LIcENSE PLATEIN BRAZIL 2014 AUTO PARTS TRADE GAP

Source: Fenabrave

Forecast

+1% IN 2015

Forecast

+2,8% IN 2016

MAIN IMPORTED PARTS:Gearbox parts Shock Absorbers

Bodies Clutches

Axles Wheels

Brakes Steering Boxes

US$ 4.56BILLION

1 of each 4 vehicles produced in Brazil is manufactured by fiAt – Betim plant, the largest automotive plant in all of America, the second in the World.

100.000 more vehicles than the second OEM in Brazil

LEADER IN BRAZIL FOR 13 YEARS

13

if fiAt Betim were a country, it would be among the world 20th largest producers (more than the 2014 italy’s production)Productive Capacity

per year after the conclusion of the expansion plan (2018)

950thousand

trucks per year manufactured at iveco’s plant

70.000

US$ 500 MILLIONAnnual amout of iveco’s purchase.The company will invest more than US$ 200 million until the end of 2016, mainly to increase the participation of national products in its production line.

IVEcO NEEDS IN THE BRAZILIAN SUPPLY cHAINChassis Radiator/HVAC Injected/Painted Parts

B.I.W. Parts Tire & Wheel Assy. Rear Axle

Exhaust System MODE Center Seats

Front Suspension Drive Line Others

POTENTIAL SUPPLIERS vAle do AÇo (steel valley)

leading state in metalmechanic industry

and steel production

easily connected to the metropolitan region

of Belo horizonte through a highway

TALENT POOLHighest concentration of Federal Universities

MINAS GERAIS: A BIG STATE, WITH GREAT POTENTIAL

Private Universities

State Universities

Federal Universities

45 11

2 Leading University in patents submitted

More than 1.800 Patent requests

Federal University has the highest Number of Engineering Students

One of the Top 400 Universities of The World 2nd Best Ranked in Brazil Source: Shangai Ranking – 2014

of the national GDP 2014:

US$ 133,26 Bi.Similar to Chile or Czech Republic

9,2%

11% of Brazil’s industrial workers

Second largest in the country

3rd Brazilian industrial GDP 2014:

US$ 36,75 Bi.

MINAS GERAIS: cENTRAL & cOST EFFEcTIVE STATE

20.6 Million of inhabitantsPopulation size similar to Australia

Land size larger than France

63% of the National GDP is condensed in just 800 km

INTERNATIONAL REPRESENTATIONS

6 General Consulates

3 International Schools

31 Honorary Consulates

1 Consular Corps

8 Chambers of Commerce

cOST EFFIcIENcY

INFRASTRUcTUREOn average:

45% cheaper than São Paulo

63%cheaper than Rio de Janeiro

LIVING cOSTSOn average:

40% cheaper than São Paulo

38%cheaper than Rio de Janeiro

Sources: IBGE, RAIS, AliceWeb

LOGISTIcS: cLOSE TO EVERYTHING THAT INTEREST YOUR cOMPANY

DIREcT INTERNATIONAL FLIGHTS– To Europe, the United States and other Latin American destinations.

JUST AN HOUR FLIGHT FROM SÃO PAULO, BRASÍLIA AND RIO DE JANEIRO – The country’s main economic, political and tourism centers.

LATIN AMERIcA’S FIRST AEROTROPOLIS – Logistics advantages for hi-tech companies. – Industrial airport (less time for shipment). – BH Airport managed by Flughafen Zürich.

MAIN BRAZILIAN HIGHWAY SYSTEM(13% OF THE NATIONAL TOTAL)

2ND MAIN RAILWAY SYSTEM

INTERNATIONAL AIRPORT

MANY REGIONAL AIRPORTS

INDUSTRIAL AIRPORT

5 DRY PORTS(IN LAND cUSTOMS)

5

EASY AccESS TO THE MAIN BRAZILIAN MARKET

direct Acess from Belo horizonte metropolitan region to são Paulo – fernão dias highway

8 of the 10 largest oem are located in a 500 km radius from the metropolitan region of Belo horizonte, representing a potential market similar to south korea. easily connected to the largest markets in the country.

The Auto parts sector has the second largest workforce in the country. More than 117k employees in 2013.

SENAI facilities are able to train technicians according to the specifi c needs of your company. One of its units is located in the city of Betim, with focus on:Metal Mechanics, Automation, Electronics, Electronic Maintenance, Mechanics, etc

INFRASTRUcTURE cOST EFFIcIENcY

The average cost to settle a plant in Minas Gerais is lower than in the states of São Paulo (-37%), Rio de Janeiro (-42%) and others.

Industrial building around 50 km²Source: Cushman & Wakefi eld

MANPOWER cOST

Comparing the last 6 months the manpower monthly costs in the states.

Assemblingsupervisors

Machinesoperators

Oilers

Maintenancesupervisors

Mechanicengineers

Supervisors of productionin Plastic and

Rubber Industries

Technicians inmanufacturing

plastic and rubber

MechanicalVehicle Technicians

Mechanicsdesigners

Control Technicians

Machiningsupervisors

Most attractive cities of Minas Gerais

Rio de Janeiro São Paulo

STRATEGIc LOcATIONS TO SETTLE YOUR BUSINESSSETE LAGOASLocated in the Metropolitan Region of Belo Horizonte, Sete Lagoas is one of the wealthiest cities of the State of Minas Gerais, 70 km far from the capital. It also counts with a great quality of life and a (0,760) HDI above the Brazilian and State averages.

rAnked in the toP 10 smAll AmericAn cities of the future 2015/16 for its cost effectivness.

Source: fDi American Cities of the Future 2015/16

cOST EFFEcTIVE REGION

59% how much, on average, the region of sete lagoas is cheaper than the average of the state of são Paulo for vehicles and parts manufacturing

50 km from the international Airport.

90 km from Belo horizonte.

63% labor force participation rate.

GdP per capita similar to manaus.

214k inhabitants.

Bars andRestaurants

Food

Transport

UtilitiesSport, Leisureand Culture

Housing

Education

Sete Lagoas

Rio de Janeiro

São Paulo

HDI

0,5111991

0,7602010

BETIM AND cONTAGEM


40% how much, on average, the region of Betim and contagem is cheaper than the average of the state of são Paulo for vehicles and parts manufacturing

BETIM: 70 km away from the International Airport Tancredo Neves.

35 km away from Belo Horizonte.


GDP per capita: TOP 60 in the country Larger than São Paulo and Brasília.

406k inhabitants.

CONTAGEM: 1st Industrial city in Brazil.

57 km away from the International Airport Tancredo Neves.

30 km away from Belo Horizonte.


GDP per capita higher than Manaus.

638k inhabitants.

Bars andRestaurants

Food

Transport


Housing

Education

Betim/Contagem

Rio de Janeiro

São Paulo

HDIBETIM

0,4501991

0,7492010

HDICONTAGEM

0,5121991

0,7562010

VARGINHA


68% how much, on average, the region of varginha is cheaper than the average of the state of são Paulo for vehicles and parts manufacturing

Dry Port (in land customs) integrated to the Technology Industrial Condo.

1st In land customs to fully operate in the country

Regional airport connected to a highway system.

Logistics: easy access to the main Brazilian Highway connecting to the main ports and airports.


GDP per capita higher than Manaus and Porto Alegre. Similar to Curitiba and Rio de Janeiro.

130k inhabitants.

The industries in the auto parts sector are the main employers in the city (more than 2.600k professionals).

Bars andRestaurants

Food

Transport


Housing

Education

Varginha

Rio de Janeiro

São Paulo

HDI

0,5911991

0,7782010

TOP 10 IN THE STATE

STRATEGIc LOcATIONS TO SETTLE YOUR BUSINESS

fiscal benefits.

FIEMG’S EXPAND PROGRAM cAN PROVIDE ASSISTANcES TO INVESTORS REGARDING THE FOLLOWING ISSUES:

INVEST AND DO BUSINESS IN MINAS GERAIS WITH FIEMG.

ONE STOP SHOP100% cHARGE FREE

Business Intelligence Services Foreign Trade

Trade Promotion Training

Labour Relations Innovation and Technology

Intellectual Property Support Environmental Projects

Fiscal and Tax Questions Institutional Affairs

Strategic Partnership with State Government for site location,

funding and incentives

invest@fi emg.com.br+55 (31) 3263-4720+55 (31) 3263-4715

PARTNERS:

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